NEW DELHI- Copper prices edged lower on Monday as the US dollar steadied after last week’s inflation data cast doubts on when the Federal Reserve would begin to ease interest rates, while trading resumed in China after the week-long Lunar New Year holiday.
Three-month copper on the London Metal Exchange was down 0.7 percent at $8,426 per metric ton.
The most-traded March copper contract on the Shanghai Futures Exchange (SHFE) rose 0.7 percent to 68,330 yuan ($9,495.69) a ton.
Data last week showed both US producer prices and consumer prices increased more than expected in January, with the apparent stickiness in inflation raising the prospects of a delayed start to the Fed’s rate cuts.
A stronger US currency makes dollar-priced metals more expensive for holders of other currencies.
However, there were expectations of demand revival in China.
“Any signs of stronger buying from China following its week-long Lunar New Year holiday should boost sentiment,” ANZ Research said in a note.
Among other metals, LME aluminum edged 0.2 percent lower to $2,213 a ton, nickel eased 0.4 percent to $16,290, zinc was down 0.2 percent at $2,381, lead decreased 0.9 percent to $2,046 and tin fell 2.1 percent to $26,395.
SHFE aluminum edged lower 0.6 percent to 18,775 yuan a ton, nickel was up 0.3 percent at 125,970 yuan, tin rose 1.6 percent to 217,640 yuan, while zinc fell 0.7 percent to 20,330 yuan, lead was down 1.8 percent to 15,955 yuan.-Reuters
